The US government plans to take more equity stakes in critical minerals companies, framing the approach as a direct counter to China’s dominance in key raw materials.
The policy emphasis is explicitly about stakes, not simply support, with a White House official describing government ownership positions as a tool that is no longer “once-rare” in this market.
The targeted category is critical minerals, with examples including gallium and cobalt, materials that sit inside consumer electronics supply chains and industrial applications at the same time.
The administration’s stated rationale is dual-use urgency: these inputs are used in products “ranging from iPhones” to industrial magnets, and are also described as vital for defense systems and for technologies tied to cutting carbon pollution.
On deployed capital, the US government has already spent over $1 billion to take equity stakes in critical minerals and mining companies, establishing that this is not a theoretical shift but an operating one.
The cited examples of equity participation include deals involving MP Materials, Vulcan Elements, and Trilogy Metals.
The Department of Defense is set to become the largest shareholder in MP Materials with about 15% stake, while the White House-backed push also included a 10% stake in Trilogy Metals plus warrants for another 7.5% and roughly $35.6 million tied to Alaska’s Upper Kobuk Mineral Projects, alongside a 5% stake by the Department of Energy in Lithium Americas.
At the same time, officials have talked up complementary tools like price floors and strategic stockpiles, and Reuters has reported discussions around an about 8% potential stake in critical metals linked to Greenland’s Tanbreez rare earths deposit.
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